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What Is The Unemployment Rate In Minnesota

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An Overview Of Minnesotas Unemployment Benefits

Minnesota Unemployment Rate is Down – Lakeland News at Ten – December 11, 2014

Minnesotas Unemployment Insurance Program, overseen by the Department of Employment and Economic Development , partially replaces wages for individuals who find themselves out of a job at no fault of their own. It is also referred to as Unemployment Insurance Minnesota or UIMN.

These benefits replace income while an individual is not working and in search of a new job, stabilizing and stimulating the local economy and the individual as they look for work. Unemployment insurance payments are supplemented by job search services offered at no cost through Minnesotas UI Program.

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Unemployment Rate Hit Record 99 Percent In Minnesota In May

Adam Uren


Minnesota’s unemployment rate hit a seasonally adjusted record of 9.9 percent in May, the highest seen since modern records began in 1976.

The Minnesota Department of Employment and Economic Development released the figure on Thursday, saying it captures the job situation “immediately prior to the lifting of the Stay at Home order and the phased reopening of non-Critical Sector businesses in the state.”

It stands to reason then that unemployment should drop in June given that more businesses have been allowed to reopen including the loosening of restrictions for the hard-hit hospitality industry, with restaurants now allowed to open at 50 percent capacity.

Nonetheless, the figures highlight the major toll COVID-19 has taken on the state, with lockdowns imposed in mid-March to limit the spread of the virus.

Hospitalization, infection, and deaths rates have been slowing in recent weeks, suggesting the state may be over the worst for now, though epidemiologists have cautioned that there could be a second wave in the fall.

Despite the increase in the unemployment rate, Minnesota did see a 0.4 percent increase in payroll jobs, with 9,800 added in May.

The private sector added 27,500 jobs, while government jobs dropped 17,700.

The sectors that saw the largest increases were leisure and hospitality, up 13,800 jobs, followed by accommodation and food service with 11,900.


Calculating The Unemployment Rate

Remember that the unemployed are those who are out of work and who are actively looking for a job. We can calculate the unemployment rate by dividing the number of unemployed people by the total number in the labor force, then multiplying by 100.

Figure 1. Employed, Unemployed, and Out of the Labor Force Distribution of Adult Population , 2016. The total adult, working-age population in 2016 was 253.5 million. Out of this total population, 151.4 million were classified as employed and 7.7 million were classified as unemployed. The remaining 94.4 million were classified as out of the labor force. As you will learn, however, this seemingly simple chart does not tell the whole story.

Figure 1 shows the three-way division of the over-16 adult population. In 2016, 62.8% of the adult population was in the labor force; that is, either employed or without a job but looking for work. Those in the labor force can be divided into the employed and the unemployed. These values are also shown in Table 1. The unemployment rate;is not the percentage of the total adult population without jobs, but rather the percentage of adults who are in the labor force but who do not have jobs:


Table 1. U.S. Employment and Unemployment, 2016
;Total adult population over the age of 16 ;253.5 million
;Out of the labor force ; ;94.4 million

Recommended Reading: What Do You Need To Sign Up For Unemployment

Criticisms Of Measuring Unemployment

There are always complications in measuring the number of unemployed. For example, what about people who do not have jobs and would be available to work, but have gotten discouraged at the lack of available jobs in their area and stopped looking? Such people, and their families, may be suffering the pains of unemployment. But the survey counts them as out of the labor force because they are not actively looking for work. Other people may tell the Census Bureau that they are ready to work and looking for a job but, truly, they are not that eager to work and are not looking very hard at all. They are counted as unemployed, although they might more accurately be classified as out of the labor force. Still other people may have a job, perhaps doing something like yard work, child care, or cleaning houses, but are not reporting the income earned to the tax authorities. They may report being unemployed, when they actually are working.

Although the unemployment rate gets most of the public and media attention, economic researchers at the Bureau of Labor Statistics publish a wide array of surveys and reports that try to measure these kinds of issues and to develop a more nuanced and complete view of the labor market. It is not exactly a hot news flash that economic statistics are imperfect. Even imperfect measures like the unemployment rate, however, can still be quite informative, when interpreted knowledgeably and sensibly.

Minnesota County With Highest Unemployment Rate Has Zero Covid

How To Apply For Unemployment In Mn

More than 600,000 Minnesotans have filed for unemployment since the beginning of the coronavirus pandemic.

According to the Department of Employment and Economic Development , the state has had 633,405 applications for unemployment insurance since March 16. That number represents a little more than 20 percent of the states workforce, Fox 9 reported Wednesday.

As of Thursday, both Hennepin and Ramsey counties had an unemployment rate of 21 percent. Cook Countys workforce has been hit the hardest by the pandemic, with 32 percent of its labor force filing for unemployment. However, the county had zero confirmed cases of COVID-19 as of Thursday. Cook County is one of just three counties in Minnesota with no confirmed cases.

Around 200,000 unemployment applications were filed in the first two weeks of the pandemic, but the state continues to see between 3,000 and 9,000 applications per day. Since the beginning of May, about 35,000 Minnesotans have filed for unemployment.

As of April 24, Minnesota had 536,742 unemployment claims, meaning the state has seen 96,663 new applications in the past two weeks.

Nationally, an additional 3.17 million Americans filed for unemployment in the week ending May 2, bringing the total number of unemployment claims filed over the past seven weeks to 33.5 million.

Two lawsuits have been filed against Gov. Walz and his administration by small business owners who believe the coronavirus restrictions are unconstitutional.

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Situations That Affect Income

There are situations that may affect eligibility for benefits or the benefit amount. If working while receiving benefits, benefits will not be payable in weeks where more than 32 hours are worked or gross earnings are equal to or greater than the weekly unemployment benefit. If the applicant has not looked for work in a week, benefits are not payable for that week. Weekly benefits may be lowered due to deductions for income tax purposes, child support or due to unemployment overpayments. Income received for severance, vacation, sick, holiday, social security, workers’ compensation or from pension accounts may also reduce the weekly benefit amount.

Minnesota Unemployment Rate Dropped To 42 Percent In March

Leigh Trail /

Minnesota appears to be on track for economic recovery, though its anyones guess how soon the state will return to pre-pandemic levels.

In a Thursday morning press briefing, Minnesota Department of Employment and Economic Development commissioner Steve Grove said that the state last month reached its highest levels of growth since the pandemic began.

We still have a long way to go, however, Grove said.

In March, Minnesotas unemployment rate dropped to 4.2 percent, marking a small improvement over the February rate of 4.4 percent. As in prior months, that was mostly due to people leaving the labor market entirely, DEED officials said.

And similar to earlier months, the distribution of unemployment was uneven across the state, with Black Minnesotans bearing the brunt of pandemic-induced economic declines. Black Minnesotans had an unemployment rate of 9 percent in March, while white Minnesotans had an unemployment rate of 5.9 percent.

In total, Minnesota added 21,600 jobs in March. Construction led the way, adding 7,900 new jobs last month. But the leisure and hospitality industry, which added 4,300 jobs last month, wasnt far behind.

There have been anecdotes, both locally and across the country, of restaurants actually having a hard time bringing workers back.

But Grove also touted growth in the construction industry.

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Minnesotas Unemployment Rate Holds Steady At 4% Jobs Picture Evolving; Employment Growth Outpaces Us Over The Year

July 19, 2021 by Fillmore County Journal

ST. PAUL Minnesotas seasonally adjusted unemployment rate remained steady at 4.0% in June and the states labor force participation rate also remained level at 67.9%, according to numbers released today by the Minnesota Department of Employment and Economic Development . Nationally, the unemployment rate rose one-tenth of a percentage point in June to 5.9% with labor force participation holding steady at 61.6%.;

Over the month, Minnesota lost 600 jobs on a seasonally adjusted basis. The private sector lost 3,100 jobs, down 0.1%. These losses are the first since December 2020 in Minnesota. Growth has been uneven from month to month coming out of the pandemic recession. Translating seasonally adjusted job change into a 3-month moving average series, which helps level out this unevenness, Minnesota added 15,400 jobs, up 0.6%, in Feb-April; 14,267, up 0.5%, in March-May; and 7,267, up 0.3%, in April-June, a strong growth pattern. Nationally, this compares to 0.4% growth in each of these three periods.;

We know that our recovery from the pandemic will take time, both nationally and at the state level, said DEED Commissioner Steve Grove. The good news is there are lots of great opportunities in our economy right now, and were spending every day finding new ways to connect workers with jobs in the industries most in demand.;

Over the month in June, the U.S. gained 850,000 jobs, up 0.6%, with the private sector up 662,000 jobs or 0.5%. ;

What Requirements Do I Need To Meet To Qualify For Unemployment Benefits In Minnesota

Unemployment At 14 Percent For Minnesota African-Americans

To receive Minnesota unemployment benefits you must fulfill all of the following Minnesota unemployment eligibility criteria:

You must have earned enough money during your base period.

How much money you receive in Unemployment Insurance benefits is determined by wages earned within a span of time called a base period. In Minnesota, your base period is a span of 1 year . All wagesincluding bonuses, severance pay, commission, vacation pay, and overtime payearned in any state are included in total wages earned.

You must have legal authorization to work in the United States.

Youll need to provide documentation that youre authorized to work in the US.

You must be out of work at no fault of your own.

In Minnesota, any individual out of work for a reason other than lack of work will be guided through a process to determine eligibility for unemployment benefits:

  • Youll answer questions on your application as to why you became unemployed.
  • Your employer answers the same questions.
  • UIMN compares the answers to determine Minnesota unemployment eligibility.
  • UIMN mails both you and your employer a determination outlining whether or not youre eligible.
  • Maintain an active job search while receiving benefits.

    Be able and willing to accept a suitable job offer.

    Only individuals who are ready to accept suitable work should it be offered to them are entitled to receive unemployment payments in Minnesota. Some examples of individuals who are not able to accept work:

    Also Check: How Do I Get My Unemployment Back Pay

    Unemployment Insurance Tax Rates

    Employers with covered employment must pay quarterly unemployment insurance taxes into the Minnesota Unemployment Insurance Trust Fund. The UI Trust Fund is used solely to pay unemployment benefits.

    Your UI tax rate is calculated for your individual business. It is normally calculated and mailed to you in December each year and applies to taxable wages in the following calendar year. Your UI tax rate is based on your employment history and the current balance of the UI Trust Fund.

    • New employers: Employers that have only paid wages for a short time are assigned a tax rate based on the average for their industry.
    • Experience-rated employers: Employers that have paid wages for long enough to qualify for an experience rating will get an individually-calculated tax rate. This tax rate is determined by dividing the total unemployment benefits paid to former employees by the total taxable wages paid to all their employees.

    Your UI tax rate is applied to the taxable wages you pay to your employees. You cannot withhold UI tax from the wages you pay to employees.

    Minnesota Unemployment Benefits And Eligibility

    COVID-19 UPDATE:Because the coronavirus pandemic has left so many Americans jobless, the federal government has given states more flexibility in granting unemployment benefits. Youll need to apply for these benefits through your states unemployment insurance program, but if you have questions about whether youre eligible for benefits read our COVID-19 Unemployment Benefits and Insurance FAQ. Also, before submitting a claim in Minnesota, be sure to check out Minnesotas claimant handbook.

    Read Also: What Day Does Unemployment Get Deposited In Nc

    Can I Appeal The Decision If My Minnesota Unemployment Benefit Claim Is Denied

    Minnesota Unemployment Insurance claimants are entitled to a fair and impartial appeal hearing should you want to challenge your eligibility determination. Appeals that are filed within a specified timeframe online through your application account or via mail or fax will be granted a hearing by an impartial Minnesota Unemployment Law judge.

    You may also file via fax or through the mail:

    • Fax: 205-4007
    • Mail:P.O. Box 4629,St. Paul, MN 55101-4629.

    When filing via mail or fax, youre required to state who is filing the appeal, the reason for the appeal, the Issue ID, and your Social Security number.

    If you disagree with the determination received at your hearing, you can submit a request for reconsideration within 20 days after the decision was mailed out. The same judge will review the decision again.

    Should you wish to take the decision past a request for reconsideration, you may turn the case over to the Minnesota Court of Appeals.

    Minnesota Unemployment Rate Drops To 41%

    Minnesota economy beats Wisconsin: 7 charts, 1 table ...

    ST. PAUL Minnesota’s unemployment rate fell one tenth of a percentage point over the month in April, according to statistics released Thursday, May 20, as the state recorded four consecutive month of job gains.

    With a 4.1% rate of unemployment, the state remains below the national rate of 6.1%, which grew by a tenth of a percentage point over the month in April. Minnesota reported a seasonally unadjusted unemployment rate of 9.1% in April of last year, by comparison, as the coronavirus pandemic took its toll.

    The State Department of Employment and Economic Development attributed the dip to unemployed Minnesotans returning to work. In an online news conference Thursday, Commissioner Steve Grove again dismissed an idea gaining traction with some lawmakers but for which there no clear evidence: that enhanced unemployment benefits are deterring jobseekers.

    “I think the issue is far more complex than that narrow concern would indicate,” Grove told reporters. The lack of access some Minnesotans have to child care resources and transportation can be an inhibitor, he said, as can lingering concerns about COVID-19 exposure.

    Others may not be able to find a job that pays as well or better than the one they lost, according to Grove. “There’s value in… people picking the right way to reenter the economy,” he said.

    Of the 416,300 jobs Minnesota lost between February and April of last year, it has so far recovered about 235,300, or 56.5%.

    Everything Employers Need To Know About Paying Unemployment Insurance Taxes In Minnesota

    By David M. Steingold, Contributing Author

    If your small business has employees working in Minnesota, you’ll need to pay Minnesota unemployment insurance tax. The UI tax funds unemployment compensation programs for eligible employees. In Minnesota, state UI tax is just one of several taxes that employers must pay.

    Different states have different rules and rates for UI taxes. Here are the basic rules for Minnesota’s UI tax.

    How Is The Us Unemployment Data Collected

    The unemployment rate announced by the U.S. Bureau of Labor Statistics each month is based on the Current Population Survey , which has been carried out every month since 1940 by the U.S. Bureau of the Census. Great care is taken to make this survey representative of the country as a whole. The country is first divided into 3,137 areas. Then 729 of these areas are chosen to be;surveyed. The 729 areas are then divided into districts of about 300 households each, and each district is divided into clusters of about four dwelling units. Every month, Census Bureau employees call about 15,000 of the four-household clusters, for a total of 60,000 households. Households are interviewed for four consecutive months, then rotated out of the survey for eight months, and then interviewed again for the same four months the following year, before leaving the sample permanently.

    Based on this survey, unemployment rates are calculated by state, industry, urban and rural areas, gender, age, race or ethnicity, and level of education. A wide variety of other information is available, too. For example, how long have people been unemployed? Did they become unemployed because they quit, or were laid off, or their employer went out of business? Is the unemployed person the only wage earner in the family?

    File Scheduled Ui Tax Reports And Payments

    In Minnesota, UI tax reports and payments are due within one month after the end of each calendar quarter. In other words, reports and payments are due by the following dates:

    • 1st Quarter returns and payments due on or before April 30
    • 2nd Quarter returns and payments due on or before July 31
    • 3rd Quarter returns and payments due on or before October 31, and
    • 4th Quarter returns and payments due on or before January 31.

    If any of the latter dates falls on a weekend or state government holiday, the due date is the next state government business day.

    You can file your Wage Detail Reports reports online or by an automated phone system. To file online, login to your account at and, on My Home Page, click Submit Wage Detail.

    Large employers must make payments electronically. Smaller employers can pay electronically or by paper check. To make payments electronically, you must use the the Minnesota Employer Self-Service System by going to If are eligible and choose to pay by check, you will need to print a payment voucher to submit with your check. You can download a voucher from your account at

    Quarterly wage detail reports must be submitted until you terminate your UI tax account, including through the end of the calendar quarter in which your account is to be terminated. If you have a quarter with no covered wages paid and you have an active employer account, you must submit a Zero Wage Report. You will be subject to a penalty if you fail to file.

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